What are the examples of double insurance?

Double insurance occurs when a policyholder insures the same risk with multiple insurance companies, resulting in overlapping coverage. Examples include purchasing multiple health insurance policies from different providers or insuring a single property through different homeowners' insurance policies. In the event of a claim, the insured can only recover up to the total loss, with the insurers often sharing the payout based on the proportion of coverage. This practice can lead to complications in claims processing and may violate certain insurance policies' terms.